Silver Price Forecast – Silver Markets Slam Into Downtrend Line

Silver markets rallied a bit during the trading session on Thursday, reaching towards the downtrend line in what could either be a down trending channel or the top of the descending triangle. Because of this, the downtrend line becomes very crucial.
Christopher Lewis
Silver daily chart, October 18, 2019

Silver markets rallied a bit during the trading session on Thursday, but still has to deal with the downtrend line that’s just above. By doing so, it is arguing with the possibility of whether or not this descending triangle is going to stay in effect, or are we going to break out to the upside and go screaming towards the $18.00, and then perhaps even $18.75 after that.

SILVER Video 18.10.19

The alternate scenario of course is that we break down below the $17.00 level and kick off the descending triangle which could send this market as low as $14.25, although that might be a bit of a stretch based upon fundamental factors such as central banks around the world continuing to cut rates and of course the fear of geopolitical event in general. All things being equal, for me the trade that it’s easier to take is going to be a break above that downtrend line, as it goes with the longer-term uptrend that we have seen most of the year. The 50 day EMA is currently cutting through the candlesticks and suggesting that the market is essentially flat and trying to figure out which way to go. I am going to trade to the upside with much more confidence than the down, but I will do as the market instructs, and not trying to anticipate the next move. All things being equal, we should get some answers relatively soon when it comes to the next direction for Silver in general.

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